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JPMorgan says Bitcoin may dump to $25,000, cites Grayscale’s GBTC unlocks

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JPMorgan analysts say the upcoming ‘unlock’ of a popular Bitcoin fund could cause further selling of spot BTC, driving the prices of the world’s largest cryptocurrency by market cap to as low as $25,000.

“While weak flows and price dynamics resulting from last month’s selloff fueled Bitcoin’s recent declines, possible sales of shares in the Grayscale Bitcoin Trust upon the expiry of a six-month lockup period could be an additional headwind,” wrote analyst Nikolaos Panigirtzoglou in a client, as per a report on Bloomberg.

Bitcoin has fallen nearly 50% over the past few months from a mid-April high of $64,800. It trades at $34,000 at press time, with technicals suggesting an overall bearish market for now.

How Grayscale affects Bitcoin

Grayscale’s products are a crucial part of the broader crypto market. These are publicly traded financial instruments that hold a small amount of spot crypto, such as Bitcoin or Ethereum, in a custodial account for each share they offer on the open market.

The product is largely aimed at high-networth individuals and institutional investors who may not want to interact with a shady crypto exchange (which may shut down overnight), or deal with custody their own crypto (imagine relying on yourself to safeguard millions of dollars worth of crypto holdings).

Products like Grayscale Bitcoin Trust (GBTC) are hence one of the only ways for regulated investors in the US to gain exposure to the crypto market. But therein lies a peculiarity: GBTC holdings are locked for six months—in case of a subscription, not a purchase on the open market—and trade at a premium.

This creates an arbitrage opportunity and changes market dynamics. And it’s no small amount either: The GBTC, as the below tweet shows, holds over $21 billion of Bitcoin as of today.

The big dump?

When GBTC ‘unlocks’, investors sitting on a mountain of profits compared to six months ago are incentivized to sell (rather than hold). This creates downward pressure, as tens of millions of dollars worth of Bitcoin are being sold.

Such price action is what JPMorgan refers to. “We are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally,” the bank said, adding its signals remain “overall bearish.”

The bank added:

“It would still take price declines to the $25,000 level before longer-term momentum would signal capitulation.”

Elsewhere, Jeffrey Gundlach of DoubleLine Capital tweeted it would be game over for Bitcoin if prices were to fall below $30,000. “If XBT closes below $30K it’s a big deal,” he said.

Safe to say a lot of the crypto market would like to avoid seeing that.

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Source: https://cryptoslate.com/jpmorgan-says-bitcoin-may-dump-to-25000-cites-grayscales-gbtc-unlocks/

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Binance Charity Launches NFT Tree Planting Project ‘Tree Millions’ To Plant 10 Million Trees Worldwide

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Binance Charity, the first-ever blockchain-enabled transparent donation platform, leads the most ambitious NFT tree planting project to date, to plant 10 million trees worldwide.

Tree Millions Alliance launches on September 28, 2021, led by Binance Charity.

The initiative already has 17 crypto industry players confirmed to help with reforestation efforts and aims to have 100 members by March 21, 2022, in celebration of the UN Day of Forests.

The multi-million dollar fundraising campaign is open to both corporations and individuals.

For every donation made, an NFT certificate encrypted with the details of trees planted will be issued.

It repurposes NFTs as a tool to track how donors’ money has been spent and record details such as the species of tree and where and when it’s been planted. As with all Binance Charity projects, 100% of the donation will go directly to the project execution partners.

CZ, founder and CEO of Binance, said,

“The crypto industry is young and constantly evolving, so we recognize the role our industry needs to play in protecting the planet. Tree Millions is just one step towards mitigating our impact on the natural world – we’ll keep innovating and collaborating to reduce this further. Blockchain technology is a powerful tool for building a fairer, more transparent and more equal future. We’re determined to continue unlocking this potential.”

Binance Charity is teaming up with Binance NFT, a world-leading NFT marketplace, for Tree Millions to plant the NFT in metaverse to create the world’s largest virtual tree planting forest.

In addition, Binance NFT will line up creators to take part in ‘NFT for Good’ to drive fundraising efforts for Tree Millions. NFT for Good was first launched in June 2021 by Binance Charity and Binance NFT, with a vision to capture creativity to drive meaningful change. The NFT certificates produced for Tree Millions by Binance Charity will use Binance Smart Chain, which uses less than 1% of the energy consumption of Bitcoin.

Helen Hai, head of Binance Charity and Binance NFT, said,

“The natural world is in crisis, and we’re calling on the digital world to help. It’s increasingly clear that we’re all intrinsically linked, so if we fail nature, we fail ourselves. We know trees are a critical resource in the battle against climate change and an essential part in keeping the balance to our fragile ecosystems that help to provide life on earth – that’s why we’re launching Tree Millions. We believe crypto is the future and we want to be part of a future that is green.”

Binance Charity is working with established environmental nonprofits to help execute the tree planting, such as One Tree Planted and Koala Clancy Foundation already on board, with more to be announced soon.

The first phase of the project is underway with a $2 million donation from Binance. Tree planting efforts have started in Australia, Canada, Germany, Ukraine, Kenya, Uganda, Ethiopia, Ghana, South Africa, Brazil, Mexico, Colombia, Argentina, India, Indonesia, Philippines, Vietnam and Thailand.

Tree Millions Alliance is one step toward Binance Charity and Binance’s shared vision for a greener crypto industry. Last year, Binance launched Binance Smart Chain (BSC), one of the leading green blockchains. If the Bitcoin network consumes approximately 113.89 terawatts per hour per year (TWh/year), and the traditional banking systems consume 263.72 TWh/yr – Binance Smart Chain consumes less than 1% of it. BSC is extremely eco-friendly and cost-efficient as a blockchain and as an NFT minting platform.

This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.

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Source: https://dailyhodl.com/2021/09/28/binance-charity-launches-nft-tree-planting-project-tree-millions-to-plant-10-million-trees-worldwide/

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Metaverse: Facebook set to invest $50m for research

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TL;DR Breakdown

  • Facebook budget $50m for Metaverse research.
  • Rumors about the project has been in the air since June.
  •  Metaverse will work as a set of virtual spaces where users can cooperate.

Popular social media giant Facebook has unveiled plans to disburse $50m through its XR Programs and Research funds to kickstart its vision of developing a metaverse.

In a press release on Monday, Facebook revealed its roadmap for developing the metaverse as the $50m is earmarked for global research and program partners.

Facebook said different companies would develop the project, noting that they would collaborate with policymakers, experts, and industry partners to ensure the project is brought to life.

Currently, the social media giant has partnered with multiple universities and non-profit organizations representing minority groups, including Women In Immersive Tech, Africa No Filter, among others, for the project.

Facebook’s metaverse will work as a set of virtual spaces where users can cooperate with people who “aren’t in the same physical space,” the release noted.

The social media giant shared a bigger ambition for the project noting that metaverse will work even if it (Facebook) cease to exist. It noted that the project would gulp a lot of time, stating it may take more than a decade to come up with.

Ultimately, the XR Programs and Research Fund will work as a two-year $50 million investment vehicle.

Rumors about Facebook metaverse project

Before the social media giant made its official announcement on Monday, rumors already spread that the firm was planning to develop the metaverse.

Rumors began spreading in June when the firm announced the formation of an executive team tasked with overseeing the project the following month.

Major concern for Facebook

One primary concern the social media giant would face with its new project is minimizing the amount of data used or required by the platform.

This is in the wake of criticism it faced with its Libra project over privacy concerns or lack of it.

Facebook partners on the project would be tasked with developing a tech enabling privacy-protective data usage and give people transparency and control over their own information.

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Source: https://api.follow.it/track-rss-story-click/v3/tHfgumto13DLW7WM4LO56XMq2h3ehXEp

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BIC’s Video News Show: China Bans & Evergrande

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In this episode of BeInCrypto’s Video New Show, host Jessica Walker takes a look at recent events in China. It seems like China has been in the news every day for the last week, and not only for crypto.  

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China Crypto Ban Update: Citizens Banned from Platforms + Evergrande Crypto Hit?

China strikes again

Last week, ten Chinese government bodies barred overseas exchanges from providing services to mainland investors via the internet. This had previously been a gray area, but Chinese authorities’ recent statement settled the issue specifically.

“While this is not a surprise as China has ‘banned’ crypto many times in the past, this time there is no ambiguity,” said Henri Arslanian, PwC crypto leader and partner. “Crypto transactions and crypto services of all kinds are banned in China. No room for discussion. No gray area.”

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The announcement detailed activities that would now be prohibited, including any kind of exchange involving virtual currencies. It precludes exchange between legal and virtual currency, exchange between virtual currencies, or trading virtual currencies as a central counterparty. Overseas exchanges providing their services to Chinese residents, the statement highlighted as “an illegal financial activity.”

Additionally, providing intermediary information and pricing services for virtual currency transactions is also illegal. This is the case for token issuance financing, virtual currency derivatives transactions “and other virtual currency-related business activities.”

Exchanges stop accepting Chinese users

Following the announcement, cryptocurrency exchanges and service providers started scrambling to sever ties with their mainland Chinese clients. For instance, two of the world’s largest exchanges, Huobi Global and Binance, have already halted new account registrations from mainland customers. Huobi added that it would also clean up existing customers by the end of the year. “On the very day we saw the notice, we started to take corrective measures,” said Huobi Group co-founder Du Jun. 

Additionally, TokenPocket, a popular crypto wallet service provider, said it would terminate services to mainland Chinese clients. It added that it would “actively embrace” regulation, and welcomes cooperation from China in blockchain technologies. While effacing crypto, China hopes to have the most advanced blockchain technology in the world by 2025.

Evergrande debt

Last, but certainly not least, is Chinese real estate giant Evergrande’s story. It dominated the financial news cycle in the last week and also impacted crypto markets.

The issue surrounding Evergrande, China’s second-largest property developer by sales, is that it cannot pay back its massive loans. The real estate giant has claimed $300 billion in liabilities and, as a paper from the end of 2020 shows, the company has just $32 billion in assets. This means that Evergrande is in danger of defaulting with just 10% or so of its total liabilities on hand.

But at the time of recording, the contagion from Evergrande seems to be contained. China’s central bank vowed to protect consumers exposed to the housing market yesterday and injected more cash into the banking system as the Shenzhen government began investigating the company, the clearest sign yet the authorities could move to contain contagion risks.

The focus now turns to whether a coupon payment of $47.5 million due on Wednesday is made, and then to whether China can contain the economic damage if Evergrande collapses. And it seems this is one of those cases where crypto and the legacy financial system are looking in the same direction for answers.

What do you think about this subject? Write to us and tell us!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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Source: https://beincrypto.com/bics-video-news-show-china-bans-evergrande/

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